Older people are often quite ‘canny’ with their money, looking after the pennies. Many people are aware that they can switch gas and electricity, banks, telephone and internet accounts. Many people will seek better growth for their pension fund so that they have a greater fund when they retire.
However, how many of those canny pensioners would know that by being asked a few questions by a financial adviser, they could easily increase their income from their pension by 30-40% or in many cases by much more (source Assureweb).
Every pension policy holder has the right to ‘shop around’, but 2/3 of people don’t. This is called the Open Market Option and all pension companies must tell their policy holders of this choice. However, often this will be ‘down the page’ and not given a headline position. Many cannot imagine that they would be better off moving the fund.
I recently looked at an annuity option for a client age 65. He had been provided with details of his pension by his pension company. He had smoked all his life, yet the company were not aware of this. I presented figures that would increase the income he had been offered by 39%! This income would be paid to him for life – even if he gave up smoking!
By seeking the advice of an adviser who knows the market and will provide an annuity that takes into account the circumstances and needs of the client, including health; the retiree will be sure to receive the right annuity in the first place and in the vast majority of cases, a much better income.
Do you know someone who is going to take their pension benefits? Would you like them to have a much better income, better lifestyle and more comfortable retirement?